Uber Eats is to withdraw from several markets in the coming months as the ride-hailing firm restrains growth of its food-delivery service. A couple of months back, local media reported the departure of the one of the company’s top food-delivery executives, Todd Harris, who left to head food-delivery in London for rival Deliveroo. Uber Eats had then touted rapid growth in London during the earnings conference call, but it’s reported by The Information that there’s more to the story than food-delivery volumes:
Uber Eats is scaling back the level of investment in several markets where it was growing faster than previously anticipated, people familiar with the matter said. Uber has decided to leave markets with relatively smaller volumes in order to bolster the company’s financial position in international markets in which it is doing better.
According to the report, the Service will be exiting some markets and is looking to expand in a number of others. The affected markets include Dublin, Hong Kong, Singapore, Mexico City, Zurich, Tel Aviv, Munich, Paris, St. Petersburg, Brisbane, and Sydney. Uber Eats’s Hong Kong office is in the heart of Causeway Bay and the company’s Singapore office in Brick Lane.
The move, according to The Information report, is a reaction to a slowdown in international markets the company has been focused on for the past few years. Being too aggressive with its growth in a market has already brought down Uber Eats into a loss on an annual basis in some of these international markets. The Location of the closures may also have something to do with Uber’s IPO going smoothly so far.